Independent Bank (IBCP) 8-K Results of Operations and Financial Condition

Exhibit 99.2

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Supplemental Data

Non-performing assets (1)

	September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021
	(Dollars in thousands)
Non-accrual loans	$	5,307		$	5,859		$	5,893		$	5,545		$	5,917
Loans 90 days or more past due and still accruing interest	—			—			—			—			—
Subtotal	5,307			5,859			5,893			5,545			5,917
Less:  Government guaranteed loans	1,491			1,360			859			435			327
Total non-performing loans	3,816			4,499			5,034			5,110			5,590
Other real estate and repossessed assets	348			508			438			245			224
Total non-performing assets	$	4,164		$	5,007		$	5,472		$	5,355		$	5,814
As a percent of Portfolio Loans
Non-performing loans	0.11		%	0.14		%	0.17		%	0.18		%	0.19		%
Allowance for credit losses	1.50			1.47			1.52			1.63			1.62
Non-performing assets to total assets	0.08			0.10			0.11			0.11			0.13
Allowance for credit losses as a percent of non-performing loans	1,340.20			1,064.30			906.38			924.70			837.19

(1) Excludes loans classified as "trouble debt restructured" that are not past due.

Troubled debt restructurings ("TDR")

	September 30, 2022
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDR's	$	3,210	$	28,071		$	31,281
Non-performing TDR's (2)	—		1,063		(3)	1,063
Total	$	3,210	$	29,134		$	32,344

	December 31, 2021
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDR's	$	4,481	$	31,589		$	36,070
Non-performing TDR's (2)	—		1,016		(3)	1,016
Total	$	4,481	$	32,605		$	37,086

(1)	Retail loans include mortgage and installment loan segments.
(2)	Included in non-performing assets table above.
(3)	Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

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Allowance for credit losses

	Nine months ended September 30,
	2022							2021
	Loans			Securities		Unfunded Commitments		Loans			Securities		Unfunded Commitments
	(Dollars in thousands)
Balance at beginning of period	$	47,252		$	—	$	4,481	$	35,429		$	—	$	1,805
Additions (deductions)
Impact of adoption of ASC 326	—			—		—		11,574			—		1,469
Provision for credit losses	3,783			168		—		(2,558)			—		—
Initial allowance on loans purchased with credit deterioration	—			—		—		134			—		—
Recoveries credited to allowance	2,004			—		—		3,918			—		—
Loans charged against the allowance	(1,897)			—		—		(1,698)			—		—
Recoveries included in non-interest expense	—			—		676		—			—		363
Balance at end of period	$	51,142		$	168	$	5,157	$	46,799		$	—	$	3,637
Net loans charged (recovered) against the allowance to average Portfolio Loans	0.00		%					(0.11)		%

Capitalization

	September 30, 2022		December 31, 2021
	(In thousands)
Subordinated debt	$	39,414	$	39,357
Subordinated debentures	39,643		39,592
Amount not qualifying as regulatory capital	(638)		(581)
Amount qualifying as regulatory capital	78,419		78,368
Shareholders’ equity
Common stock	320,437		323,401
Retained earnings	108,916		74,582
Accumulated other comprehensive income (loss)	(97,045)		501
Total shareholders’ equity	332,308		398,484
Total capitalization	$	410,727	$	476,852

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Non-Interest Income

	Three months ended						Nine months ended
	September 30, 2022		June 30, 2022		September 30, 2021		September 30,
							2022		2021
	(In thousands)
Interchange income	$	4,049	$	3,422	$	4,237	$	10,553	$	10,739
Service charges on deposit accounts	3,082		3,096		2,944		9,135		7,178
Net gains (losses) on assets
Mortgage loans	2,857		1,253		8,361		4,945		30,280
Securities	—		(345)		5		(275)		1,421
Mortgage loan servicing, net	4,283		4,162		1,271		18,086		4,476
Investment and insurance commissions	750		682		678		2,170		1,895
Bank owned life insurance	59		105		145		302		411
Other	1,781		2,257		2,054		5,525		4,472
Total non-interest income	$	16,861	$	14,632	$	19,695	$	50,441	$	60,872

Capitalized Mortgage Loan Servicing Rights

	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
	(In thousands)
Balance at beginning of period	$	39,477	$	22,431	$	26,232	$	16,904
Originated servicing rights capitalized	1,588		2,529		5,237		8,637
Change in fair value	2,093		(752)		11,689		(1,333)
Balance at end of period	$	43,158	$	24,208	$	43,158	$	24,208

Mortgage Loan Activity

	Three months ended									Nine months ended
	September 30, 2022			June 30, 2022			September 30, 2021			September 30,
										2022			2021
	(Dollars in thousands)
Mortgage loans originated	$	209,041		$	317,683		$	453,752		$	796,918		$	1,436,497
Mortgage loans sold	157,511			142,977			279,235			522,213			963,442
Net gains on mortgage loans	2,857			1,253			8,361			4,945			30,280
Net gains as a percent of mortgage loans sold  ("Loan Sales Margin")	1.81		%	0.88		%	2.99		%	0.95		%	3.14		%
Fair value adjustments included in the Loan Sales Margin	0.25		%	(0.27)		%	0.04		%	(0.54)		%	(0.40)		%

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Non-Interest Expense

	Three months ended						Nine months ended
	September 30, 2022		June 30, 2022		September 30, 2021		September 30,
							2022		2021
	(In thousands)
Compensation	$	12,839	$	12,533	$	11,507	$	37,807	$	32,764
Performance-based compensation	4,290		3,776		6,252		11,728		15,327
Payroll taxes and employee benefits	3,472		3,573		3,900		11,078		11,973
Compensation and employee benefits	20,601		19,882		21,659		60,613		60,064
Data processing	2,653		2,644		3,022		7,513		7,972
Occupancy, net	2,062		2,077		2,082		6,682		6,578
Interchange expense	927		1,262		1,202		3,200		3,351
Furniture, fixtures and equipment	987		1,042		1,075		3,074		3,112
Communications	723		762		683		2,242		2,341
Loan and collection	772		647		735		1,978		2,353
Advertising	345		560		666		1,585		1,319
FDIC deposit insurance	591		457		346		1,570		983
Legal and professional	573		479		513		1,545		1,534
Amortization of intangible assets	174		233		242		639		727
Costs related to unfunded lending commitments	382		649		369		676		363
Supplies	147		161		116		431		460
Correspondent bank service fees	75		80		77		232		292
Conversion related expenses	—		6		275		50		1,636
Provision for loss reimbursement on sold loans	12		12		36		57		95
Net gains on other real estate and repossessed assets	(18)		(141)		(28)		(214)		(202)
Other	1,360		1,622		1,442		4,377		4,091
Total non-interest expense	$	32,366	$	32,434	$	34,512	$	96,250	$	97,069

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Average Balances and Tax Equivalent Rates

	Three Months Ended September 30,
	2022						2021
	Average Balance		Interest		Rate (2)		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,353,102	$	37,019	4.39	%	$	2,896,552	$	30,061	4.13	%
Tax-exempt loans (1)	7,519		92		4.85		7,148		90		5.00
Taxable securities	891,677		5,329		2.39		951,445		3,922		1.65
Tax-exempt securities (1)	334,526		2,727		3.26		365,937		2,070		2.26
Interest bearing cash	5,830		28		1.91		57,153		23		0.16
Other investments	17,653		192		4.32		18,427		181		3.90
Interest Earning Assets	4,610,307		45,387		3.92		4,296,662		36,347		3.37
Cash and due from banks	62,340						57,151
Other assets, net	212,194						159,961
Total Assets	$	4,884,841					$	4,513,774
Liabilities
Savings and interest-bearing checking	2,548,213		2,803		0.44		2,317,142		695		0.12
Time deposits	402,466		822		0.81		314,394		395		0.50
Other borrowings	124,531		1,403		4.47		108,908		962		3.50
Interest Bearing Liabilities	3,075,210		5,028		0.65	%	2,740,444		2,052		0.30
Non-interest bearing deposits	1,376,279						1,303,401
Other liabilities	98,232						72,387
Shareholders’ equity	$	335,120					$	397,542
Total liabilities and shareholders’ equity	$	4,884,841					$	4,513,774
Net Interest Income			$	40,359					$	34,295
Net Interest Income as a Percent of Average Interest Earning Assets					3.49	%					3.18	%

(1)	Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
(2)	Annualized

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Average Balances and Tax Equivalent Rates

	Nine Months Ended September 30,
	2022						2021
	Average Balance		Interest		Rate (2)		Average Balance		Interest		Rate (2)
	(Dollars in thousands)
Assets
Taxable loans	$	3,155,410	$	96,742	4.09	%	$	2,859,207	$	86,126	4.02	%
Tax-exempt loans (1)	7,922		281		4.74		6,801		256		5.03
Taxable securities	978,668		14,831		2.02		881,465		10,374		1.57
Tax-exempt securities(1)	336,123		6,950		2.76		347,873		5,845		2.24
Interest bearing cash	36,761		94		0.34		76,533		74		0.13
Other investments	17,806		557		4.18		18,427		555		4.03
Interest Earning Assets	4,532,690		119,455		3.52		4,190,306		103,230		3.29
Cash and due from banks	59,851						55,883
Other assets, net	196,406						155,701
Total Assets	$	4,788,947					$	4,401,890
Liabilities
Savings and interest-bearing checking	2,528,655		4,232		0.22		2,239,887		2,059		0.12
Time deposits	365,245		1,376		0.50		319,792		1,429		0.60
Other borrowings	116,774		3,463		3.96		108,866		2,888		3.55
Interest Bearing Liabilities	3,010,674		9,071		0.40	%	2,668,545		6,376		0.32
Non-interest bearing deposits	1,342,228						1,279,006
Other liabilities	88,281						65,464
Shareholders’ equity	$	347,764					$	388,875
Total liabilities and shareholders’ equity	$	4,788,947					$	4,401,890
Net Interest Income			$	110,384					$	96,854
Net Interest Income as a Percent of Average Interest Earning Assets					3.25	%					3.09	%

(1)	Interest on tax-exempt loans and securities is presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.
(2)	Annualized

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Commercial Loan Portfolio Analysis as of September 30, 2022

	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	13,633	$	703	$	—	$	703	5.2	%
Land Development	17,250		—		—		—		—
Construction	105,981		—		—		—		—
Income Producing	428,122		471		—		471		0.1
Owner Occupied	437,449		19,053		—		19,053		4.4
Total Commercial Real Estate Loans	$	1,002,435	$	20,227	$	—	$	20,227	2.0
Other Commercial Loans	$	405,795	$	6,398	41		$	6,439	1.6
Total non-performing commercial loans					$	41

Commercial Loan Portfolio Analysis as of December 31, 2021

	Total Commercial Loans
			Watch Credits						Percent of Loan Category in Watch Credit
Loan Category	All Loans		Performing		Non-accrual		Total
	(Dollars in thousands)
Land	$	13,621	$	114	$	—	$	114	0.8	%
Land Development	14,854		32		—		32		0.2
Construction	67,663		—		—		—		—
Income Producing	402,936		2,215		—		2,215		0.5
Owner Occupied	360,614		21,960		—		21,960		6.1
Total Commercial Real Estate Loans	$	859,688	$	24,321	$	—	$	24,321	2.8
Other Commercial Loans	$	343,893	$	12,546	62		$	12,608	3.7
Total non-performing commercial loans					$	62

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